Returning to a trend of rising ROEs
? FY21 net profit growth was 21.5% yoy, the strongest in nine years.
? Provisioning buffers continue to build, with 4Q21’s provisioning coverage
ratio of 484% a record high and well above the 120% regulatory minimum.
? Interestingly, 4Q21 credit card NPL formation rates worsened qoq (Fig 6) and
may have led to CMB slowing its credit card loan growth (Fig 4).
? Remains our top sector pick. Reiterate Add rating; Slight TP cut to HK$84.1.